Seismic Shift in AI Regulation: EU AI Act Takes Effect, Banning Risky Practices

As I sit here, sipping my morning coffee, I ponder the seismic shift that has just occurred in the world of artificial intelligence. The European Union's Artificial Intelligence Act, or EU AI Act, has finally come into effect, marking a new era in AI regulation. Just a few days ago, on February 2, 2025, the first set of rules took effect, banning AI systems that pose significant risks to the fundamental rights of EU citizens[1][2].

These prohibited practices include AI designed for behavioral manipulation, social scoring by public authorities, and real-time remote biometric identification for law enforcement purposes. The European Commission has also published draft guidelines to provide clarity on these prohibited practices, offering practical examples and measures to avoid non-compliance[3].

But the EU AI Act doesn't stop there. By August 2, 2025, providers of General-Purpose AI Models, including Large Language Models, will face new obligations. These models, capable of performing a wide range of tasks, will be subject to centralized enforcement by the European Commission, with fines of up to EUR 15 million or three percent of worldwide annual turnover for noncompliance[1][4].

The enforcement structure, however, is complex. EU countries have until August 2, 2025, to designate competent authorities, and the national enforcement regimes will vary. Some countries, like Spain, have taken a centralized approach, while others may follow a decentralized model. The European Artificial Intelligence Board will coordinate enforcement actions, but companies will need to navigate a myriad of local laws to understand their exposure to national regulators and risks of sanctions[4].

As I reflect on these developments, I realize that the EU AI Act is not just a regulatory framework but a call to action. Companies must implement strong AI governance strategies and remediate compliance gaps. The first enforcement actions are expected in the second half of 2025, and the industry is working with the European Commission to develop a Code of Practice for General-Purpose AI Models[4].

The EU AI Act is a landmark legislation that will shape the future of AI in Europe and beyond. As I finish my coffee, I am left with a sense of excitement and trepidation. The next few months will be crucial in determining how this regulation will impact the AI landscape. One thing is certain, though - the EU AI Act is a significant step towards ensuring that AI is developed and used responsibly, protecting the rights and freedoms of EU citizens.